FAQS
Navigating Complexity, Simplifying Answers
Expert Advice Courtesy of Huron Title Company
Huron Title Company understands that navigating the intricacies of the real estate world can often lead to a barrage of questions. That’s why we are here to lend our expertise and provide you with the answers you need. As the leading title company in Port Huron, MI, we specialize in various areas, including title insurance, construction escrow, abstracting and title examination, and more. Our experienced team is committed to guiding you through the process, ensuring a smooth and reliable experience. From understanding the intricacies of construction escrow to addressing any concerns you may have, Huron Title Company is your trusted partner in Port Huron, MI for all your real estate needs.
Your Title Questions – Answered.
What are closing costs?
Closing costs refer to the various costs and expenses associated with closing a real estate transaction. These costs are determined by the contracts between the parties, applicable laws, and local customs. The explanation of closing costs provided here is based on our sample Real Estate Purchase Contract (available for download in the Forms section), Washtenaw County custom, and assumes typical mortgage closing expenses.
How long will my closing last?
Closing a transaction should not be a lengthy process. For a residential resale, we typically allocate one hour, while for a refinance, it usually takes 30-45 minutes.
What are transfer taxes?
Michigan imposes two transfer taxes on the sale or transfer of real estate. There is a county transfer tax of $1.10 per $1,000 and a state transfer tax of $7.50 per $1,000. Numerous exemptions exist for these taxes, particularly for transactions where no monetary value is assigned or where the transaction involves family members or current co-owners of the property.
What is a tax proration?
A tax proration is an allocation of the property taxes between the seller and purchaser as determined by their contract. While not required, it is customary. In Washtenaw/Livingston Counties, the most commonly used proration method is the “due date in advance” method. This method treats the property tax bill like a subscription, where payment on December 1 is considered a purchase of government services for the period starting on December 1 and ending on November 30 of the following year. For example, in a transaction closing on February 1, the purchaser will reimburse the seller for 10/12ths of the previous December’s tax bill, as the purchaser will occupy the property for 10 months of the 12-month period that started the previous December 1.
Do I need an attorney?
It is highly recommended to hire a real estate attorney when buying or selling a home due to the significant financial and tax considerations involved. A good real estate attorney can provide critical advice on appropriate contingency clauses, title restrictions, and tax consequences of your transaction. It’s important to find an attorney who is experienced and current in this area of law. Recommendations for finding an attorney can be obtained from realtors, experienced loan officers, or a title company.
Why do I record my deed? Is it my title?
Recording a deed is important as it provides notice to the world that you own your property. Recording a deed at the Register of Deeds gives “constructive notice” to the world of your ownership. If you fail to record your deed, only those individuals with actual notice of your interest in the property will be aware of your ownership. It’s important to understand that the deed is evidence of your ownership and not a “title” like a car title. Placing the deed on record is critical.
How long before we can close?
What is escrow?
Escrow is a term used in real estate that can have multiple meanings. It can refer to the entire closing process, an agreement to hold funds/documents until certain events have occurred, or an agreement to hold a deposit for a specific use. Understanding the specific context in which the term is used is important, so feel free to ask for clarification when it is mentioned.
What are the requirements for recording my title?
Michigan has specific requirements for recording documents at the Register of Deeds Office. These requirements include:
- Documents must be at least 8 1/2″ by 11″ and no larger than 8 1/2″ by 14″
- There must be a 2 1/2″ margin at the top and a 1/2″ margin at the sides
- The document must be in black ink on white paper (signatures can be in blue ink in Washtenaw County but nothing else)
- The minimum paper weight must be 20lbs (thermal fax paper is not acceptable)
- The document must be legible with at least a 10pt typeface
- The document must be signed in the presence of a Notary Public
- Additionally, there are recording fees of $9.00 for the first page and $2.00 for each additional page. For example, a three-page document would cost $13.00 to record.
Huron Title Company
330 Michigan St.
Port Huron, MI 48060
Business Hours
Monday – Friday
8:00 AM to 5:00 PM
Saturday & Sunday
Closed